Payment card acceptance on networked devices increases the acceptance of digital currency, reduces the transaction cost and risks associated with the use of cash, improves financial access to the masses, and removes barriers for small businesses across the globe.
In general, there are a wide variety of payment cards available to consumers, including credit cards, debit cards, loyalty cards, membership cards, radio frequency tags, key fobs and other devices or apparatus that store information for use in connection with a payment network. Payment networks are designed to process data stored on payment cards during transactions between merchants and payment card holders. Card readers typically obtain information from a payment card when the card is swiped through or placed in proximity to a card reader. Devices with capabilities for processing such information for payments are known in the art and are becoming more prevalent in the marketplace.
Currently payment card acceptance devices exist that are constructed for specific computing systems, or brands, and that utilize only that specific computing system's data port. The problem with these devices is that they can only be used with those specific computing systems and they are not interchangeable with other systems or brands. Interoperability between different computing system systems or brands is widely thought to be difficult to impossible.
Devices also exist that use audio ports and utilize signal setting resistors. These devices have much broader interoperability but since the selection process of signal setting resistor for a particular phone, by definition, is a function of audio signal characteristics of that phone, there is a possibility that the same device may not work on other phones, or across a wide variety of other phones.
More importantly, in each of the foregoing instances, there is a risk of fraud in the transaction. For example, a person who is not a legitimate merchant and who does not have a authenticated device may skim cards to obtain credit card information during a legitimate transaction. The information obtained can then be used by that person or others in subsequent, illegitimate transactions. This is referred to herein as Type 1 fraud. On the other hand, a legitimate merchant with an authentic device ay use the device to engage in illegitimate transactions (i.e. transactions not authorized by the payment card holder). This is referred to herein as Type 2 fraud.
Accordingly, in light of these problems with conventional wireless card data transmission methods, there exists a need for improved methods, systems, and computer program products for acquiring payment data from networked devices, including devices of different types, by card readers associated with networked devices.